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United States: OFAC and BIS Issue Joint Fact Sheet in Support of the Provision of Internet and Telecommunication Services to the Cuban People

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On August 11, 2021, the US Treasury Department’s Office of Foreign Assets Control (“OFAC”) and the Commerce Department’s Bureau of Industry and Security (“BIS”) issued a joint Fact Sheet: Supporting the Cuban People’s Right to Seek, Receive, and Impart Information through Safe and Secure Access to the Internet (the “Fact Sheet”) and a related press release. The Fact Sheet highlights the most relevant exemptions and authorizations pertinent to supporting the Cuban people through the provision of certain internet and related telecommunications services. The Fact Sheet does not have the force of law and does not supersede any relevant statutes or regulations.  Rather, it was issued to emphasize President Biden’s commitment to ensuring the Cuban people have access to internet and telecommunication services and to encourage the free flow of information in and with Cuba. For additional information on the Biden-Harris administration’s position on Cuba, please see the White House Fact Sheet here.

As noted in the Fact Sheet, although almost all transactions subject to US jurisdiction involving Cuba are prohibited under the Cuba embargo, BIS and OFAC have issued several license exceptions, general licenses (“GLs”), exemptions, and frequently asked questions (“FAQs”) related to the provision of internet-based services in Cuba. Telecommunications and internet-based services and items the export of which to Cuba may be authorized or exempt from prohibitions include:

  • Software and services for Cuban internet users;
  • Provision of telecommunications services and establishment of telecommunications facilities;
  • In-country presence of internet and telecommunications providers;
  • Internet-based distance learning and educational training;
  • Export and import of information and informational materials;
  • Items in Support of the Cuban People e.g. certain items for the creation and upgrade of telecommunications infrastructure to improve the free flow of information to, from, and among the Cuban people, including infrastructure that enables access to the internet and use of internet services; and
  • Consumer Communications Devices.

These license exceptions, GLs, and exemptions vary in scope and should be carefully analyzed before exporting or re-exporting any items or providing any services to Cuba or the Cuban people.

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Sylwia Lis is a partner and member of the International Trade, Compliance and Customs Steering Committee in Baker McKenzie. She has extensive experience advising companies on US laws relating to exports and reexports of commercial goods and technology, defense trade controls and trade sanctions — including licensing, regulatory interpretations, compliance programs and enforcement matters. She also has advised clients on national security reviews of foreign investment administered by the Committee on Foreign Investment in the United States (CFIUS), including CFIUS-related due diligence, risk assessment, and representation before the CFIUS agencies.

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Lise Test, an associate in Baker & McKenzie’s International Trade Group in Washington, DC, practices in the area of international trade regulation and compliance — with emphasis on US export control laws, trade sanctions, anti-boycott laws and the Foreign Corrupt Practices Act. Prior to joining Baker & McKenzie, Ms. Test served as a lawyer at the Danish Ministry of Defence where she focused on international public law and Danish torts, administrative law and military criminal law. In addition to her practice, Ms. Test also taught international humanitarian law and contract law at the Danish Royal Naval Academy.

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Andrea Tovar regularly advises multinational companies on cross-border commercial transactions and complex privacy and international trade matters. Andrea is also a member of the Firm’s Technology, Media & Telecoms Global Industry Group and Co-Chairs the North America Baker Unidos Affinity Group.

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